Operator: Good morning, and welcome to the United Technologies' Fourth Quarter Conference Call. On the call today are Greg Hayes, Senior Vice President and Chief Financial Officer; and Jay Malave, Director, Investor Relations. This call is being carried live on the Internet and there is a presentation available for download from UTC's website at www.utc.com.

Please note, the Company will speak to results from continuing operations, except where otherwise noted. They will also speak to segment results adjusted for restructuring and one-time items as they usually do. The Company also reminds listeners that the earnings and cash flow expectations and any other forward looking statements provided in this call are subject to risks and uncertainties. UTC's SEC filings, including its 10-Q and 10-K reports, provide details on important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements.

Once the call becomes open for questions, we ask that you limit your first round to two questions per caller to give everyone the opportunity to participate. You may ask further questions by reinserting yourself into the queue and we will answer as time permits.

Please go ahead, Mr. Hayes.

Gregory J. Hayes - SVP and CFO: Yeah. Thank you, Stephanie. Good morning, everyone. As you saw in the press release this morning, no surprises. UTC closed on a transformational 2012 just as Louis laid out for you in December. Full-year sales were just under $58 billion; that was up 4% from 2011. That, of course, was driven by the Goodrich and IAE acquisitions.

Earnings per share was $5.35 and that included about $0.50 of headwind from FX, pension and E&D. For the year, Goodrich is only about $0.06 dilutive, a little better than what we had expected, due to lower amortization, financing, and one-time deal costs, and more importantly better underlying performance in the Goodrich business.

Free cash flow was again strong at 108% of net income attributable to common share owners and we paid down about a third of the Goodrich debt just as we had planned. As we all know, 2012 was a challenging global economic environment, and while there is still plenty of uncertainty ahead for 2013 in both Europe and the U.S., we have seen signs of stabilization, particularly in Europe, and we started to see a gradual recovery in the U.S. economy, led by a rebound in housing market, and we continue to expect solid growth in emerging markets throughout the coming year.

As you come to expect from UTC, we just didn't wait for the economy to recover. We proactively leveraged our scale and optimized our cost structure, while we continued to invest in game-changing technologies, all the while transforming the portfolio to take advantage of the growth opportunities over the next decade in our core markets of aerospace and commercial buildings.

We also took the difficult actions this past year, reducing our structural overhead costs and focusing on global growth markets. In 2012, we invested nearly $600 million in restructuring, of which $258 million was in the fourth quarter alone, as the business has continued to find solid payback projects to reduce costs and position us for earnings growth this year and beyond.

Transcript Call Date 01/23/2013

Operator: Jeff Sprague, Vertical Research Partners.

Jeffrey Sprague - Vertical Research Partners: Greg, can you just elaborate a little bit more on Sikorsky for us, so the charge in the quarter is basically just late fees as it were because the deliveries didn't happen?

Gregory J. Hayes - SVP and CFO: Yeah. Let me take you through. Really, the charge was related to all the costs that we foresee related to what we believe will be later deliveries than contractually required. As you know, we are supposed to deliver all the aircraft this year the final 19. We didn’t deliver any next year’s. So, our expectation, our assumption now is that we will deliver the helicopter over the next three years. We’ve put a placeholder of 8, as you know, for each of the next three, which we think is a reasonable schedule for both ourselves from a production standpoint and the customers’ from a delivery standpoint. But having said that, we recognize that there are cost contractual revenues that we'll have to cover as it relates to the Canadian government and then we're going to also have fewer flight hours and we're probably going to have some cost on the program related to that longer timeframe. So, really three pieces; there’s some contractual relief cost, there’s some flight hour degradation, and there’s just some additional program costs and all that added up to the $157 million charge.

Jeffrey Sprague - Vertical Research Partners: But we still absorb, whatever it is, $4 million a unit as you ship those 8 a year over the next three years, correct?

Gregory J. Hayes - SVP and CFO: Yeah, it's $14 million a year. Again, we should point out, we obviously can ship more than just the eight a year. We can probably deliver most of the helicopters this year. We just don't think that that's practical. I think Mick and the team have made some really good progress in the last month since Louis spoke in having discussions with the Canadian government. And I think, again, we'll hear some good news coming out of Mick in March.

Jeffrey Sprague - Vertical Research Partners: And just on share repurchase, you said you started here in January. Obviously the cash has been strong. Do you have a little bit more leash with the rating agencies to try to at least kind of fully arrest share creep in 2013 or potentially even go further than that?

Gregory J. Hayes - SVP and CFO: Well, I think, we'll certainly be able to arrest share creep with the share buyback that we've got. As you know we’ve got a placeholder of $1 billion for share buyback this year and $1 billion for M&A. As I think about the cash, we're still going to see about $1.5 billion of cash proceeds coming in from these divestitures that will close here in the first half. We ended the year with strong cash flow, over $5 billion on the balance sheet. We'll have strong cash flow for the year. So, I think thinking about the (calls) on cash, we’ve got $2 billion going to dividends, we've got $1 billion for share buyback, we've got $1 billion of debt that's due in December, that's the 18-month floater. We'll certainly be in position to pay that. We'll probably pay down another $1 billion of debt, so (stuff) that’s due in ’15 or ’16, and then we’ll talk to the rating agencies about talking up the number. But I think cash flow is very strong, stronger than what we expected and, of course, (my boss) is pushing me to do a lot more than a $1 billion but it’s January, so we’ll see what happens.